Buildings and their contents that are used for income producing purposes are eligible to be depreciated. Similar to capital assets owned and used for income producing purposes, such as machinery, which can be depreciated over time.
The Australian Taxation Office (ATO) allows owners of income producing properties to claim this depreciation as a deduction. Unlike other deductions, such as interest on a loan where you need to outlay money in order to make a claim, depreciation is considered a non-cash tax deduction.
All types of income producing properties have substantial taxation benefits. Both new and old properties will attract some depreciation benefit that the investor is able to claim to reduce their tax liability. A common myth is that older properties will attract no claim – which is not true. It is worth making an enquiry about any property, regardless of its age.
When an investor hasn't been claiming deductions for tax depreciation, previous financial years' tax returns can be amended. The ATO allows for the previous two years returns to be amended, and in some instances the ATO may have to pay you money back.
To ensure every investor's claim is maximised, BMT utilise a comprehensive depreciation schedule. For eighteen years BMT have continually refined the reporting process and system to offer a report second to none.
Below is a list of what to expect in a BMT Tax Depreciation Schedule:
To find out how BMT can help you maximise the deductions from your investment property - Click here
Call us today and discover how our expertise can benefit your investment property:
Adele Andrews 0439 663 066
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